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Minnesota Gov. Signs Adult-Use Cannabis Legalization Bill

5/30/2023

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Minnesota became the 23rd state to legalize adult-use cannabis today after Gov. Tim Walz (D) signed the state’s legislature-approved legalization proposal, according to a Northern News Now report.

The 300-page bill legalizes adult-use cannabis for adults aged 21 and older, setting the personal possession limits at two ounces of flower in public and up to two pounds at home. The proposal also legalizes the home growing of up to eight plants with a maximum of four flowering plants at a time, and includes automatic expungement provisions for cannabis misdemeanors or petty possession charges.

Under the proposal, cannabis possession and cultivation will become legal on August 1 while adult-use licenses are not expected until the summer of 2024. When Minnesota retailers and other operators launch their businesses — expected sometime in 2025 — commercial cannabis products will carry an additional 10% tax from the state.

The proposal also creates a new Office of Cannabis Management, which will oversee the licensing of medical and adult-use cannabis operators and set regulations for those industries, as well as for hemp-derived consumer products.

The legalization bill’s success marks the end of a years-long effort by the Minnesota Democratic–Farmer–Labor Party, which took full control of the state government in 2022 and this year has secured multiple legislative victories.

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Hemp Building Materials Included in National Mall’s Innovative Housing Showcase

5/30/2023

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Hemp building materials, including hempcrete, will be on display on the National Mall in Washington, D.C. as part of the annual Innovative Housing Showcase. The showcase takes place June 9-11.

The hemp building materials – including hempcrete, hemp blocks, hemp wood flooring, hemp wool batt insulation, hemp rebar, geopolymer hemp stucco, and quickcrete – will be exhibited by the US Hemp Building Association (USHBA).

In a press release, Ray Kaderli, USHBA president, noted that in Europe, hemp has been used in building materials for 30 years.

“Hemp building materials displayed on the National Mall will turbocharge education and answer questions on this remarkable building solution. This showcase will move the industry forward.” — Kaderli in a statement

The USHBA has also announced a partnership Mandi Kerr of Utah-based Global Hemp Association to make key relationships with congressional staffers during the showcase. Kaderli said the partnership “provides advocacy for the total supply chain of industrial hemp from the seed to the walls of a building.”

“Global Hemp Association has provided advocacy and leadership for the genetics and farming of industrial hemp to build our agricultural supplies,” he said. “US Hemp Building Association provides advocacy for the raw materials made into building materials. The whole supply chain is represented.”

Hemp building materials will be showcased as part of the Department of Energy’s emphasis on plant-based decarbonizing building materials.

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Weill Cornell Medicine Conducting NIH-Funded Study on Cannabis’ Effect on Brains of People with HIV

5/30/2023

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Weill Cornell Medicine has been awarded a five-year, $11.6 million grant from the National Institute on Drug Abuse (NIDA) of the National Institutes of Health (NIH) to study what effects cannabis — and compounds derived from it — may have on the brains of those living with HIV.

Researchers are attempting to determine whether cannabis exacerbates HIV’s effects on the brain, or protects against them.

In a press release, principal investigator Lishomwa Ndhlovu, a professor of immunology in medicine in the Division of Infectious Diseases at Weill Cornell Medicine, said researchers “know that the virus may cause changes within the brain, but it’s not clear yet how the use of cannabis might interact with the infection.”

Studies have found that people living with HIV frequently use cannabis, recreationally or to treat symptoms related to HIV. Cannabis has anti-inflammatory properties that researchers speculate could reduce the chronic, harmful inflammation caused by the virus. Researchers believe this inflammation contributes to the long-term health problems, including cognitive deficits, that people living with HIV may experience.

To examine the interaction between cannabis and HIV, the researchers will focus on several brain regions, including the hippocampus, where new neurons form, in a process critical to learning and memory. Using brain tissue samples collected from human patients after death and from nonhuman animal models, they intend to look at gene activity and the mechanisms controlling it within individual cells.

In a statement, Michael Corley, assistant professor of immunology in medicine in the Division of Infectious Diseases, said “It’s unclear how different types of brain cells react to cannabis in the context of HIV” and that new single-cell technologies will allow researchers to map the changes at a resolution high enough to examine the effects on specific cell types.

The project is a component of NIDA’s SCORCH program, which seeks to investigate how substances that can lead to addiction may modify the effects of HIV in the brain, at the level of individual cells. This cannabis research is the second SCORCH project based at Weill Cornell Medicine.

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New York to Allow Cannabis Farmers’ Markets

5/29/2023

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In a move aiming to address the state’s cannabis supply chain glut, the New York Office of Cannabis Management (OCM) announced last week that industry operators will be allowed this summer to host cannabis farmers’ markets in order to sell more product, according to a NY Cannabis Insider report.

The plan, announced by OCM Director of Policy John Kagia during a meeting with the Cannabis Association of New York, will see the state’s conditionally licensed growers and retailers team up to organize the farmers’ markets’ assembly and operation. Ultimately, the markets should create an opportunity for cultivators to sell their oversupply as there are currently just 13 operational retailers in the state, and shelf space is too crowded for the millions of dollars worth of cannabis products that the state’s growers have produced, the report said.

“A minimum of three growers and a retailer can organize events where growers can sell flower and pre rolls … and do so through a retailer, but at non-storefront locations.” — Kagia, via NY Cannabis Insider

Regulators still have to finalize details for the farmers’ market program and that process could take at least a month, the agency said.

The state’s adult-use cannabis industry has so far been wrought with legal challenges and delays, which prompted at least one out-of-state company to cancel its New York expansion plans. Meanwhile, a recent MPG Consulting report found that the slower-than-expected adult-use cannabis roll-out could cost the state up to $2.6 billion in lost tax revenues over the next eight years.

Earlier this month, lawmakers dedicated $16 million of the state’s annual budget toward cracking down on unlicensed cannabis dispensaries.

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Colorado Gov. Signs Psychedelics Legalization Bill

5/29/2023

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Colorado Gov. Jared Polis (D) signed a psychedelics legalization and decriminalization proposal last week, Westword reports. The new law will take effect on July 1.

The proposal, Senate Bill 23-290, is the Legislature’s response to Proposition 122, the successful Colorado ballot initiative passed last year to legalize psychedelic mushrooms and establish state-regulated “healing centers” where patients can consume psilocybin in a controlled environment. Prop 122 had called for the legalization of therapeutic psilocybin use and decriminalized the personal cultivation and use of natural psychedelics including magic mushrooms, DMT, ibogaine, and non-peyote-based mescaline, but ultimately left implementation and regulation responsibilities to lawmakers.

Introduced by Colorado Senate President Stephen Fenberg (D), SB 290 establishes restrictions for the personal cultivation of psilocybin mushrooms and other natural psychedelics and creates new regulations and criminal penalties to address unlicensed dealers. Additionally, the bill puts the state Department of Revenue in charge of overseeing the licensed manufacturing, testing, and distribution of psychedelics in the state.

Neither SB 290 nor Prop 122 created carveouts for local governments to ban the psychedelics industry outright but officials can still enact “time, place, and manner restrictions” on such businesses, the report said. The bill does not allow for the public consumption of psychedelics.

Psychedelic medicine advocates in the state have argued that the new law sets too many restrictions on unlicensed activity and communal use.

Oregon became the first U.S. state to allow therapeutic psilocybin use earlier this year after voters there approved a medical psychedelics legalization measure in 2020.

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Bipartisan Cannabis Legalization Bill Introduced In Ohio

5/26/2023

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A bi-partisan bill to legalize cannabis has been introduced in Ohio by state Reps. Casey Weinstein (D) and Jamie Callender (R) would allow the cultivation, purchasing, and possession of cannabis by Ohioans over the age of 21, and allow for the expungement of conviction records for previous cultivation and possession offenses.

The measure includes a 10% tax on sales which would be distributed in part to support primary and secondary education, support communities that host dispensaries, combat drug dependence and illegal drug trafficking, and into the state general fund.

“It’s time for Ohio to act on this before we fall too much further behind our neighbors. Adult-use is good for our economy, good for our justice system, and the right thing to do. Ohioans are ready to legalize cannabis, and I am proud to offer this bipartisan bill to get it done.” — Weinstein in a press release

In a statement, Callender added that the U.S. is “increasingly heading towards the de-scheduling of cannabis products at the federal level” and “Ohio has an opportunity to get ahead of the curve in developing its cannabis industry.”

“Through the expansion of Ohio’s successful Medical Marijuana program to all Ohioans, we will not only be building upon best practices from around the country but utilizing the lessons learned here in Ohio,” he said.

Under the bill, Ohio’s Medical Marijuana Control Program would be extended to also regulate the cultivation, processing, and sale of adult-use cannabis products. It would be renamed the Division of Marijuana Control to reflect its role in running both the medical cannabis and adult-use programs and be housed within the Department of Commerce.

The legalization bill is still awaiting a committee assignment.

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Report: More Than 90% of California Cannabis Infected with Hop-Latent Viroid

5/26/2023

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More than 90% of cannabis in California is infected with a pathogen that effectively destroys the plant and could wreak havoc on the state’s industry, according to an SF Gate report. Hop-latent viroid (HLVd) shrivels cannabis plants, reducing how much weight they produce by as much as 30%, and cutting THC in the plant by as much as half, the report says.

The pathogen was first documented in cannabis in 2019 and it is estimated to have infected most of the state’s cannabis. In 2021, Dark Heart Nursery announced the results of a formal survey that found, after 200,000 tissue tests, 90% of California facilities included in the research had HLVd, according to a Cannabis Business Times report.

The pathogen has also been found at cannabis grows in Massachusetts, according to an NPR report from February.

Tests have been developed to determine whether a plant is infected with the pathogen — one by Oakland’s Purple City Labs can be conducted on-site and delivers results in just a few hours.

If a plant is infected by HLVd, it must be destroyed, Nick Masso of Massachusetts-based Indo Labs told NPR.

“You cannot recover from hop latent viroid,” he said.

The pathogen spreads quickly because cultivators often use cuttings from a mother plant to propagate more plants, but the new plants are already infected, and the viroid spreads exponentially.

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Montana Gov. Signs Bill Extending Moratorium on Cannabis Licenses

5/26/2023

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Montana Gov. Greg Gianforte (R) on Tuesday signed legislation extending the state’s moratorium on cannabis licenses for another two years, KTVH reports. Under the law, the moratorium only allows medical cannabis companies that were licensed as of 2020 to obtain adult-use licenses.

The measure does include language that will allow 16 medical cannabis providers to join the state’s adult-use market, which had been in limbo due to the timing of the adult-use licensing process and the first moratorium.

Gianforte also signed a bill allowing the state’s tribes to expand their medical cannabis operations in the same way as other businesses that hold cannabis licenses in the state. Each of the state’s eight tribes was guaranteed one cannabis license; however, state regulators determined that, because of the way the law was worded, those licenses would be limited to a very small cultivation area. The bill signed by the governor clarifies those rules.

The legislation also increases the licensing fees for businesses that operate multiple dispensaries from $5,000 for each dispensary to $5,000 for the first, $10,000 for the second, and a $5,000 for each additional location.

Additionally, the bill includes provisions requiring that any physician who certifies more than 39 patients for medical cannabis cards in a single year undergoes a review by the state.

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German Parliament Member to Discuss Cannabis Reforms at ICBC Berlin

5/25/2023

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Back in 2021, mere weeks before what would prove to be a historic election for cannabis policy in Germany, the International Cannabis Business Conference (ICBC) hosted a panel of sitting federal lawmakers to discuss German cannabis policy. It was the first time in history that all major parties in Germany were represented in a panel discussion specific to national cannabis reform.

As we learned weeks after the historic panel discussion, a new governing coalition was elected in Germany and many of the ideas that were previously discussed at ICBC Berlin then started to enter the wider conversation regarding legalization in Europe’s largest economy. Once again, the German Cannabis Business Association (BvCW e.V.) is hosting the political discussion presentation at the upcoming ICBC Berlin 2023 event, which takes place on June 29th and 30th.

The Speakers

The political discussion at ICBC Berlin, which is titled ‘Cannabis Policy Reform Efforts in Germany’, will touch on a variety of cannabis political issues, including the development of stimulant regulation, adult-use legalization, medical cannabis policy, commercial hemp, and CBD.

Jürgen Neumeyer, managing director of Branchenverband Cannabiswirtschaft (BvCW e.V.), will serve as the moderator of the discussion. Joining Mr. Neumeyer will be Dr. Kirsten Kappert-Gonther, MdB. Dr. Kappert-Gonther is a German psychotherapist and politician (Green Party) who has served as a member of the Bundestag since the 2017 German federal election.

Dr. Kirsten Kappert-Gonther, MdB currently serves as the acting Chairwoman of the Health Committee of the German Bundestag and Spokeswoman for Cannabis Policy of the Bündnis90/Die Grünen Parliamentary Group in the German Bundestag.

Timely Discussion

Jürgen Neumeyer and Dr. Kirsten Kappert-Gonther’s discussion is being held at a crucial juncture for cannabis policy in both Germany and throughout the European continent. Adult-use cannabis legalization is not only on the move in Germany; to a lesser extent, the same can also be said about several other countries in Europe when it comes to legalization efforts.

Malta was the first country to pass a national legalization measure in Europe, although, any butterfly effect resulting from Malta’s legalization has yet to materialize. The real domino that European cannabis observers are anxiously waiting to fall is, of course, Germany. The country is home to the fourth-largest economy on earth and carries tremendous weight in continental politics.

When Germany legalizes, a butterfly effect is all but guaranteed to occur, and it will create a marker in time by which the life of Europe’s emerging cannabis industry will forever be measured by.

Attend ICBC Berlin

The International Cannabis Business Conference is the leading cannabis business-to-business (B2B) event series on the planet, with previous conferences occurring in several countries on multiple continents. The event series is owned and operated by cannabis advocates that believe in celebrating cannabis culture, in addition to providing world-class cannabis industry education and networking opportunities.

In addition to the B2B event, which is the largest of its type in Europe, the International Cannabis Business Conference will also hold a Global Investment Forum in Berlin on June 27th.

Over 5,000 cannabis leaders from over 80 countries will be represented at the International Cannabis Business Conference in Berlin and that includes representatives from every sector of the industry as well as leading international cannabis policymakers and industry service providers. Attend the International Cannabis Business Conference in Berlin to network with investors, entrepreneurs, industry regulators, and international policymakers and take your industry pursuits to the next level.

Secure your tickets now before the event sells out!

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Michigan Considers Dropping Pre-Employment Cannabis Drug Tests for Most State Jobs

5/25/2023

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The Michigan Civil Service Commission earlier this month proposed a rule change that would drop pre-employment drug testing for cannabis. The proposal would not change the requirements for safety-sensitive jobs, such as state police or commercial vehicle drivers.

“If approved, they would not impact current testing policies applicable to test-designated positions or those applicable to employees, nor would they change current prohibitions on an employee’s use of drugs while on duty or reporting for or being on duty with a prohibited level of drugs present in the employee’s bodily fluids.” — Michigan Civil Service Commission, in a statement, via Click on Detroit

Adult-use cannabis has been legal in Michigan since 2018. The rules requiring cannabis testing as a pre-employment requirement in Michigan were implemented in 1998, according to an official communication from State Personnel Director John Gnodtke.

The memo also notes that ending pre-employment testing for cannabis “would not affect the availability of reasonable-suspicion or follow-up testing for marijuana of classified employees, including candidates who become employees.” The memo says that, since the passage of adult-use cannabis laws in the state, approximately 350 applicants for classified positions have tested positive for cannabis in pre-employment testing and current state rules require rescission of the employment offer and a three-year ban from appointment to other state positions in such a situation.

“While many of these sanctions have since lapsed, a few hundred remain in effect. The commission could adopt rule language allowing amnesty through rescission of continuing sanctions based on a pre-employment drug test for a non-test designated position with a positive result for marijuana,” the memo says. “Such action would not result in employment for these candidates but would allow them to apply for classified positions rather than waiting three years after being sanctioned.”

The commission is currently seeking public comments on the proposal.

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Federal Jury Inducts Conman for Fraud Related to Fake Hemp Farm

5/25/2023

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A federal grand jury in Los Angeles, California on Tuesday indicted Mark Roy Anderson on five counts of wire fraud after he collected $9 million from investors for a hemp farm that never existed, the Los Angeles Times reports. Anderson launched the purported business after he was released from prison in May 2019, after serving more than 11 years for an oil investment scam.

Prosecutors said Anderson used the money collected from investors for Harvest Farm Group to buy a $1.3 million property in Ojai and another $2.3 million on personal expenses, including more than $650,000 for vintage and luxury automobiles, $13,000 for chartered private jet flights, and $142,000 for other high-end merchandise, according to Federal Bureau of Investigation (FBI) investigators in the criminal complaint.

Anderson has a history of scams dating back to 1988 when he swindled an individual to pay him $400,000 for an interest in a Beverly Hills office building that he falsely claimed to own. He also scammed another individual to pay $175,000 for an interest in a La Jolla building that he didn’t own. For those, and other financial crimes, Anderson pleaded guilty to grand theft and other charges and was sentenced to four years in prison, the report says.

Also in the 1980s, Anderson ran a Ponzi-style scheme to cheat investors in a scheme claiming he was restoring historic buildings around the country – he was sentenced to seven more years in prison for those crimes.

In November 2020, Anderson was released under three-year court supervision, a condition of his probation was that he not engage in investment projects; but by then, the hemp investment scheme was already in motion, according to the FBI.

Anderson was arrested on May 9 and remains in jail.

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Delaware Lawmakers Budget $4.1M for Adult-Use Cannabis Rollout

5/25/2023

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A Delaware legislative committee on Tuesday approved $4.1 million for funding the regulatory rollout of the state’s adult-use cannabis industry, WMDT reports. The funding approved by the Joint Finance Committee (JFC) will help establish the regulatory infrastructure needed within the state government to begin the adult-use cannabis licensing and oversight process.

Of the $4.1 million, $2.2 million is expected to be ongoing, recurring funding, with $1.9 million in one-time costs. The funding will be included in legislative budgets that need to be adopted by lawmakers and Gov. John Carney (D). Carney is facing a September 29 deadline to name a Marijuana Control Commission and regulations for adult-use cannabis licensing are due by July 1, 2024.

Under the state’s legalization law, the Marijuana Control Commissioner must begin issuing 30 retail and five testing licenses no later than February 1, 2025 – the deadline requirement in the regulatory framework of the legislation, meaning that it could happen sooner but no later than that date.

Delaware State Rep. Ed Osienski (D), who sponsored the adult-use legislation, told WMDT that “things could move a litter faster” than the dates set forth in the law.

The final budget must be approved by the General Assembly by July 1.

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SEC Shuts Down $60M ‘Ponzi-Like Scheme’ Tied to Non-Existent Cannabis Farm

5/24/2023

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The U.S. Securities and Exchange Commission (SEC) on Tuesday shut down a “Ponzi-like scheme” by WeedGenics and its owners. The agency said WeedGenics owners Rolf Max Hirschmann and Patrick Earl Williams, a rapper known as “BigRigBaby,” raised more than $60 million from the scheme and used the majority of the funds to make $16.2 million in Ponzi-like payments and to enrich themselves.

According to the complaint, since at least June 2019, Hirschmann and Williams promised investors they would use funds raised to expand WeedGenics facilities, which they guaranteed would produce up to 36% returns; however, Hirschmann and Williams never owned or operated any facilities.

The complaint alleges that when Hirschmann and Williams received investors’ funds, they transferred the money through multiple accounts to enrich others and for personal use such as entertainment, jewelry, luxury cars, and residential real estate. In an attempt to avoid detection, Hirschmann, acting as the face of the company, used the fake name Max Bergmann when he communicated with investors, while Williams, as vice president of the company, worked behind the scenes while spending investor funds on his more public rap career, the SEC alleges.

Michele Wein Layne, director of the SEC’s Los Angeles Regional Office, said that the actions by the duo “demonstrates that, despite the defendants’ extensive efforts to avoid detection, the SEC has the ability to uncover fraud to protect investors.”

“Rolf Hirschmann and Patrick Williams allegedly had no real company, no product, and no business, yet despite this, they promised investors everything and then delivered nothing.” — Wein Layne in a statement

The court granted the SEC emergency relief against the company, Hirschmann, Williams, and several relief defendants, including a temporary restraining order, an order freezing their assets, and appointment of a temporary receiver over the company. A hearing is scheduled for June 2 to consider whether to issue a preliminary injunction and appoint a permanent receiver, the SEC said in a press release.

The SEC’s complaint charges Hirschmann and Williams with violating the antifraud provisions of the securities laws and seeks permanent injunctions, conduct-based injunctions, disgorgement with prejudgment interest, civil penalties, and orders barring them from serving as officers and directors of other firms. The agency is also seeking disgorgement with prejudgment interest from the named relief defendants.

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Report: 52% of Cannabis Consumers in Adult-Use States Primarily Use Dispensaries

5/24/2023

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Slightly more than half – 52% – of cannabis consumers in adult-use markets use dispensaries as their primary source of cannabis products, according to a report released last week by New Frontier Data. Thirty-seven percent of cannabis consumers in medical-only states primarily get their cannabis from dispensaries, along with 29% of those in states where cannabis is illegal for any purpose, the report says.

Just 16% of respondents in adult-use states get their cannabis primarily from a friend, along with 26% of cannabis consumers in medical-only states, and 31% of those who live in a state where cannabis remains outlawed.

Another 17% of respondents living in adult-use states said they primarily used delivery services, along with 14% of those in medical-only states, and 12% who live in an illicit state.

Only 6% of respondents who live in a legal state rely primarily on a “dealer,” along with 12% of those that live in a medical-only state, and 17% of those who live in a state where cannabis is illegal.

The use of dispensaries among all cannabis consumers in 2023 rose 9% from the previous New Frontier report examining where individuals were making their purchases. The overall percentage (29%) of those getting their cannabis from friends and family remained unchanged, while the use of delivery declined from 18% in 2022 to 15% this year, while the use of dealers also fell 3% from 13% to 10%, according to the report.

The report notes that 74% of the total U.S. population currently lives in a state with either adult or medical use cannabis access.

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California Cannabis Taxes Reach $216M During Q1; Down About $32M from 2022 Q4

5/24/2023

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California cannabis taxes topped $216 million during the first quarter of the year, according to California Department of Tax and Fee Administration data outlined by KTLA. The total is down about $32 million from quarter four of last year when the state collected $248.5 million in cannabis taxes.

The reduction can be attributed, in part, to the state ending the imposition of a cannabis cultivation tax in July 2022. The quarter-one total also does not include outstanding tax returns or returns that are still being processed and only reflect the tax revenue paid to the state; many cities and counties have their own additional fees and taxes that are collected at the local level.

Falling state tax revenues are not unique to California, however, as a recent Marijuana Policy Project (MPP) report found cannabis tax revenues in the U.S. declined from $3.867 billion in 2021 to $3.775 billion in 2022. The MPP suggests the decrease is due to falling cannabis tax revenues in the six states that first legalized cannabis for adult use.

In all, California — which was the fifth state in the U.S. to pass adult-use cannabis legalization — has collected nearly $5 billion in total cannabis tax revenues since the reforms took effect there in 2018.

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DEA Seeking to Add Delta-8 THC to Controlled Substances List

5/23/2023

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The U.S. Drug Enforcement Administration (DEA) appears to back considering synthetically-derived cannabinoids that contain THC, such as delta-8 THC, as controlled substances under federal law, according to an agency conference presentation dated May 4.

Responding to a control status inquiry, the DEA claims that “If the product contains any quantity of synthetic [THC], it is controlled in schedule I of the [Controlled Substances Act] unless it is specifically excepted or listed in another schedule [of] The Agricultural Improvement Act (AIA) of 2018.

The 2018 AIA is better known as the 2018 Farm Bill which allowed for states to implement their own hemp programs, and their own rules, which led to an increase in hemp-derived cannabis products, including synthetic THC products.

In the presentation, the DEA suggests that “consumers may have a false sense of safety and legality, as delta-8 THC products may be labeled as ‘hemp,’ which consumers may not associate with psychoactive ingredients and negative outcomes.”

In the document, the agency said it is planning a proposed rule to set THC limits in hemp products at less than 1%, aligning the products with others exempted in the AIA.

The DEA notes that 14 states have already banned delta-8 THC products, while two others regulate delta-8 THC sales.

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Report: Adult-Use Cannabis Tax Revenues Decreased from 2021-22

5/23/2023

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Adult-use cannabis tax revenues in the U.S. declined slightly from 2021 to 2022 from $3.867 billion to $3.775 billion, according to a Marijuana Policy Project (MPP) report. It marks the first time the overall revenues have decreased since the first states legalized cannabis for adult use in 2014.

The decrease is likely due to falling tax revenues in the six states “with the most mature legalization laws.” States with more recent adult-use legalization programs generated more tax revenue in 2022 than in 2021, the report says.

“Reasons for declining tax revenue include the widespread availability of intoxicating synthetic cannabinoids made from hemp, which are largely unregulated and not subjected to cannabis excise taxes; lower prices in several states due to oversupply; sales beginning in additional states — reducing demand from visitors in more mature states; consumers having less disposable income due to inflation; and — in California — the state reducing the tax rate to make legal cannabis more competitive. Cannabis businesses also face significant challenges due to ongoing federal prohibition, which drives up costs of rent, banking, and almost everything else, and results in an enormous federal tax burden. Those burdens do not apply to intoxicating cannabinoids derived from hemp.” — MPP, “Cannabis Tax Revenue in States that Regulate Cannabis for Adult Use”

Andrew Livingston, Vicente LLP director of economics and research, added that the COVID-19 pandemic also played a role in the decreased revenues as cannabis sales spiked during pandemic-related lockdown orders.

“People could not spend their money going to concerts, going out to dinner, or vacation travel. So many people increased their consumption of consumer packaged goods,” Livingston said in the report. “Cannabis was a product that could still be purchased and made the difficulty of staying at home for months on end watching TV shows and movies a bit more enjoyable.”

In all, since 2014, adult-use cannabis tax revenues have topped $15.115 billion.

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California Eradicates More Cannabis During Q1 2023 Than Previous Quarter Despite Serving Fewer Warrants

5/23/2023

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California’s Unified Cannabis Enforcement Taskforce (UCETF) during the first quarter of this year seized more than $52 million in unlicensed cannabis and cannabis products and eradicated 43% more illegally grown plants (52,529) than the previous quarter (29,687) despite serving 30% fewer search warrants.

During the quarter, which ran from January 1 to March 30, the UCETF seized 31,912 pounds of cannabis. In all, the taskforce seized $52,644,200 worth of cannabis and cannabis products throughout the quarter.

In a press release, Bill Jones, chief of the Law Enforcement Division for the Department of Cannabis Control, said the results speak to the UCETF’s “effectiveness and will help support the legal cannabis market.”

“As the DCC Law Enforcement Division focuses on illegal indoor cultivations, unlicensed dispensaries, and unlicensed manufacturing and distribution operations, the multi-agency, cross-jurisdictional approach of UCETF allows us to leverage the expertise of each participating department to disrupt a broader scope of illegal businesses.” — Jones in a statement

The UCETF also seized 87% more cash in the first quarter ($95,646) compared to the previous quarter (12,602). The operations uncovered fewer firearms – four total – than the previous quarter (9).

Since 2022, UCETF has seized $84,652,875 in unlicensed cannabis through the serving of 51 search warrants, eradicating 82,216 plants and seizing 13 firearms.

The taskforce is co-chaired by the Department of Cannabis Control (DCC) and the California Department of Fish and Wildlife (CDFW) and coordinated by the Homeland Security Division of Cal Office of Emergency Services.

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NECANN to Produce Connecticut’s First Cannabis Industry Convention

5/22/2023

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Cannabis entrepreneurs, executives, and marketers are invited to attend the NECANN Connecticut Cannabis & Hemp Convention to be held from May 20-21, 2023 at the XL Center in Hartford.

NECANN specializes in creating resource hubs for the fast-expanding cannabis industry. Events where entrepreneurs, educators, businesses, advocates, investors, patients, and consumers can learn, connect, and thrive.

NECANN Connecticut will focus on businesses and products serving the emerging cannabis industry. A great substitute to the generic national canna-convention franchises, NECANN Connecticut is focused on each local market’s opportunities and needs. The convention will feature industry leaders from across the region presenting and taking part in panel discussions. This multifaceted convention offers a platform for big cannabis business deals to be simplified with providing attendees an opportunity to learn about the cannabis industry.

NECANN is proud to be a part of the Connecticut cannabis community and hopes to help evolving cannabis markets succeed and grow.

Tickets: https://necann.com/connecticut/2023-connecticut-cannabis-convention-tickets/
More info: https://necann.com/connecticut/
https://www.necann.com

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Minnesota Legislature Passes Cannabis Legalization Bill

5/22/2023

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The Minnesota Senate on Saturday passed a bill to legalize cannabis in the state, moving it to the desk of Gov. Tim Walz (D) who has indicated he would sign it into law, the Associated Press reports. Once signed by Walz, Minnesotans aged 21-and-older will be allowed to possess, consume, and grow cannabis at home beginning August 1.

The bill passed 34-32 on a party-line vote.

The bill includes a 10% excise tax on sales on top of the state’s standard sales tax. The legislation will allow adults to possess up to 2 pounds in their homes – the highest personal possession limits allowed by a cannabis legalization law in the U.S. The bill caps public possession of flower at 2 ounces, 800 milligrams of edibles, and 8 grams of concentrates.

The legislation also includes automatic expungement provisions for misdemeanor or petty misdemeanor cannabis possession. The Bureau of Criminal Apprehension has estimated it will take until August of next year to process eligible charges.

Minnesota Democrats have been pushing to pass the reforms for years but took full control of the state government following the 2022 elections.

Once the bill is signed by Walz, Minnesota will become the 23rd state to legalize cannabis.

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Nebraska Advocates Launch Medical Cannabis Legalization Ballot Initiative Campaign

5/22/2023

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Advocates in Nebraska on Thursday filed paperwork to begin a petition drive to get a medical cannabis legalization question in 2024 ballots, the Nebraska Examiner reports. Nebraskans for Medical Marijuana have previously unsuccessfully attempted to get the issue to voters but their most recent bid – for 2022 – failed to garner enough signatures.

In 2020, a medical cannabis initiative did qualify for the ballot but was thrown out by the state Supreme Court that ruled it violated the state’s “single subject” rule for ballot initiatives. The renewed effort consists of two petitions – one to set up the doctor-patient system and one to regulate the industry.

Crista Eggers, a spokeswoman for the group, told the Examiner that the effort is starting earlier this year than their previous effort as they hope to gather the more than 100,000 signatures required.

“We have no choice but to keep petitioning our government. The Legislature refuses to act despite the will of over 80% of Nebraskans, from all parties, regions, ages, etc., supporting this.” — Eggers via the Nebraska Examiner

In 2021, a medical cannabis legalization bill came within two votes of overcoming a filibuster and being approved by lawmakers. A bill introduced this year in the state Senate has not advanced out of committee.

Advocates in Nebraska have pushed for the reforms over the last eight years but have not been able to get support from a majority of lawmakers.

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Pennsylvania Bill Would Protect Cannabis Patients from DUI Just for Testing Positive for Cannabis

5/22/2023

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A bill proposed in the Pennsylvania House last week would protect medical cannabis patients from being charged with driving under the influence charges simply for testing positive for THC, Capitol Wire reports. The measure only covers Pennsylvania-registered medical cannabis patients and does not protect drivers who ate impaired by cannabis whether they are medical cannabis patients or not.

In a cosponsor memo, state Reps Chris Rabb (D) and Aaron Kaufer (R), said medical cannabis patients “regularly” contact their offices “concerned that state law makes it illegal for them to drive.”

“In 2016, the PA General Assembly voted to legalize medicinal use of cannabis. Sadly, the legislature failed to provide these patients the same privileges afforded to others who have legal prescriptions for a scheduled medication.” — Rabb and Kaufer, in the memo, via Capitol Wire

Pennsylvania is one of only a few states with zero tolerance for driving under the influence of controlled substances; 33 states, including those with no legal access to cannabis, require proof of actual impairment, the report says.

Similar legislation was introduced last year but did not move out of the House Transportation Committee. The Senate Transportation Committee last year approved a bill that aimed to resolve the conflict between state DUI law and medical cannabis law but the legislation did not get put up to a vote by the chamber.

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Minnesota House Approves Compromise Cannabis Legalization Bill

5/19/2023

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The Minnesota House on Thursday voted 73-57 to legalize cannabis for adult use in the state, the Star Tribune reports. The bill allows Minnesotans 21-and-older to buy up to 2 ounces of flower, 8 grams of concentrate, and 800 milligrams worth of edible products at a time and possess the same amounts in public. Minnesotans could also grow up to eight cannabis plants, with no more than four flowering.

Prior to the vote, State Rep. Zack Stephenson (D) said “The day has finally arrived.”

“Today is the day that we are going to vote here in the House for the last time to legalize cannabis and bring the change that many Minnesotans have wanted for a very long time.” — Stephenson via the Star Tribune

The bill was a compromise between versions already passed by the House and Senate. The bill includes a 10% tax on sales and also sets possession limits in homes at 2 pounds – the highest among states that have approved the reforms. The measure also creates an Office of Cannabis Management which would oversee licensing of medical, adult-use, and hemp-derived products.

The measure also includes automatic expungement of misdemeanor cannabis convictions and establishes a committee to consider expungement of felony-level cannabis crimes.

If approved by the Senate and signed by Gov. Tim Walz (D) – who has promised to give the reforms final approval – cannabis possession and home cultivation would be legal on August 1.

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Report: Post Accident Workforce Drug Test Positives for Cannabis Reached 25-Year High in 2022

5/19/2023

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The percentage of employees in the U.S. workforce testing positing for cannabis following an on-the-job accident increased to its highest level in 25 years in 2022, according to a new analysis by Quest Diagnostics. In 2022, post-accident cannabis positivity of urine drug tests in the U.S. workforce was 7.3%, up from 6.7% in 2021.

The new peak follows a steady increase in post-accident cannabis positivity every year from 2012 to 2022. During that 10-year time frame, post-accident cannabis positivity increased 204.2%; from 2002 to 2009, post-accident cannabis positivity declined, according to Quest’s analysis.

In a press release, Keith Ward, general manager and vice president for employer solutions at Quest, said the “historic rise seems to correspond with sharp increases in positivity for marijuana in both pre-employment and post-accident drug tests, suggesting that changing societal attitudes about marijuana may be impacting workplace behaviors and putting colleagues at risk.”

In 2022, the combined U.S. workforce urine positivity for all drugs was 4.6% – the highest level in two decades, the report says. The 2021 and 2022 positivity rates were the highest since 2001, up more than 30% from an all-time low in 2010-2012. Ward noted that the post-accident drug screenings also found an increase in amphetamines which he called “notable, given the addictive potential and health risks associated with this class of drugs.”

The analysis found that cannabis positivity rates were higher in states that allow adult and medical cannabis use. In the general U.S. workforce, cannabis positivity increased 10.3% year-over-year (3.9% in 2021 versus 4.3% in 2022), while positivity increased 11.8% (5.1% in 2021 versus 5.7% in 2022) in states that permit adult cannabis use and 8.3% (3.6% in 2021 versus 3.9% in 2022) in states that allow medical cannabis use. In states in which neither recreational nor medical marijuana is legal, marijuana positivity increased 3.3% (3.0% in 2021 versus 3.1% in 2022) year-over-year and 14.8% over five years (2.7% in 2018 versus 3.1% in 2022).

In the federally mandated safety-sensitive workforce – positions that are usually not included when states pass laws barring using a positive cannabis test to disqualify a person from employment – cannabis positivity increased nationally 14% year-over-year (0.86% in 2021 versus 0.98% in 2022), including 17% (0.94% in 2021 versus 1.1% in 2022) in states where adult use is legal, and 5.9% (0.85% in 2021 versus 0.90% in 2022) in states in which medical cannabis is legal, according to the analysis.

In states in which neither adult nor medical use is legal, cannabis positivity increased 12.7% (0.79% in 2021 versus 0.89% in 2022) year over year and 1.1% over five years (0.88% in 2018 versus 0.89% in 2022).

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